Learn About Credit Repair And Consumer Rights

The FCRA or the Fair Credit Reporting Act is a Federal law that was initially enacted by Congress in 1970 to encourage the fairness, truthfulness and the confidentiality of personal information compiled on credit reports by credit reporting agencies. It has often been amended to further protect consumers and the last amendment took place in December of 2003.

Credit reporting agencies are companies that are in the business of collecting, compiling and selling information on consumers for the goal of credit evaluation. The three main credit-reporting agencies are TransUnion, Equifax and Experian.

A consumer now has the right to dispute and challenge any information found on a credit report on the basis of completeness and truthfulness. After a dispute is received the credit bureaus have 30 to 45 days to verify the correctness and the ownership of the disputed credit. If they are not capable to supply that certification within the time frame then the negative listing must be deleted from the report.

The credit reporting agencies also have other responsibilities under the FCRA. Each year a free credit report must be provided to any consumer who requests one. Before 2003 the consumer had to give a fee for this report but an amendment in 2003 altered this and now it is provided at no charge. A report must also be provided if the consumer has been denied credit on the foundation of what is provided in the report.

A consumer has the right to dispute any information on his or her report. As per the FCRA if information is deleted as a result of the consumer’s dispute the credit reporting agency cannot reinstate the negative information without notifying the consumer in writing.

The FCRA also limits the sum of time that destructive information can be retained on the report. Normally most must be removed within 7 years from the time of delinquency but bankruptcies can stay on for 10 years and tax liens can stay on for 7 years after they are paid off.

There are estimates that as many as 40% of all disputes are not verified inside the time frame. That means that up to 40% of all disputed information must be deleted before it is even checked out. A consumer can use that fact for their own profit however, consumers must also be aware that fair, truthful and accurate information should stay on the report even if it is deemed negative.

Credit repair on credit reports can be accomplished due to the rights given by the FCRA. The consumer can do credit repair themselves or there are also professional companies that focus in credit repair. It takes time and persistence to be successful at credit repair but it can be accomplished.